Shock events such as the coronavirus outbreak and related stock market volatility can cause investors and 401(k) plan participants to act on their emotions. Putting a plan in place when markets turn south — and reviewing that plan when emotions are running high — can temper this impulse. The current market volatility gives investors, advisors and plan sponsors a golden opportunity to talk about what to do — or not do — if there is a sustained downturn.
For the full market and economic perspective from the Capital Group please read 4 Ways To Stay Calm When The Markets Stumble